HomeMy WebLinkAboutMinutes - 05/02/2016 - City CouncilREGULAR MEETING
May 2, 2016
Mayor Low called the regularly scheduled May 2, 2016 meeting of the McHenry City Council to
order at 7:00 p.m. In attendance were the following Aldermen: Santi, Glab, Schaefer, Curry,
Wimmer, Peterson and Condon. Absent: None. Also in attendance: City Administrator
Morefield, Deputy City Administrator Hobson, Director of Economic Development Martin,
Director of Community Development Polerecky, Director of Finance Lynch, Director of Public
Works Schmitt, Chief of Police Jones, City Attorney McArdle and City Clerk Jones.
PLEDGE OF ALLEGIANCE LED BY MCHENRY BOY SCOUT TROOP 131
Mayor Low invited those in attendance from Boy Scout Troop 131 to lead the Council in
the Pledge of Allegiance.
CITY OF MCHENRY MISSION STATEMENT
Mayor Low read aloud the Mission Statement of the City of McHenry.
PUBLIC HEARING ON THE PROPOSED ISSUANCE OF CITY OF MCHENRY INDUSTRIAL
DEVELOPMENT REVENUE BONDS, SERIES 2016A, 2016B AND 2016C FOR FABRIK INDUSTRIES,
INC. PROJECT IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $10,000,000, TO
FINANCE A PROJECT TO BE OWNED BY K&L EQUITY, LLC AND FABRIK INDUSTRIES, INC., AND
OPERATED BY FABRIK INDUSTRIES, INC. TO MANUFACTURE PLASTIC INJECTION MOLDED
COMPONENTS
Mayor Low opened the Public Hearing regarding the propo sed issuance of City of
McHenry Industrial Development Revenue Bonds, Series 2016A, 2016B and 2016C for Fabrik
Industries, Inc. Project in the aggregate principal amount not to exceed $10,000,000 to finance
a project to be owned by K&L Equity, LLC and Fabrik Industries, Inc., and operated by Fabrik
Industries, Inc. to manufacture plastic injection molded components at 7:03 pm.
Mayor Low inquired if there were comments from Council. Alderman Glab opined he is
pleased to see the project moving forward and that Fabrik will remain in the City of McHenry.
Alderman Peterson and Alderman Condon concurred stating they are pleased to see the
expansion of Fabrik.
Mayor Low inquired if there were comments from Council. Director of Economic
Development Martin reiterated to Council that in the City’s continuing efforts to promote
economic development and business retention, the Council unanimously approved an
Inducement Resolution regarding Industrial Development Revenue Bond Financing to Benefit
K&L Equity LLC and Fabrik Industries, Inc., together with an Ordinance Reserving Volume Cap in
Connection with Private Activity Bond Issues and Related Matters, on February 15, 2016.
Director Martin informed Council that the Industrial Development Revenue Bond is a
tool used for specific statutory projects. In this case the bonds will be used by Fabrik to:
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a) Finance the acquisition and rehabilitation of the 44,000 square foot vacant
building, located at 1515 Miller Parkway;
b) Acquisition and installation of equipment at the acquired building and Fabrik’s
existing location at 5213 Prime Parkway; and
c) A possible second phase of the expansion project.
The bonds are issued through the City of McHenry. The City has no fiduciary
responsibility and is merely a conduit for Fabrik to captur e an interest rate reduction and
exclude interest from their gross federal income. Director Martin informed Council that
Attorney Cynthia Fletcher is in attendance, representing Fabrik, to answer any questions.
Mayor Low inquired if there were any comments from the audience and there were
none.
Motion by Curry, second by Santi, to close the Public Hearing at 7:04 pm.
Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
MOTION TO:
1) APPROVE AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL
DEVELOPMENT REVENUE BONDS FOR FABRIK INDUSTRIES, INC. PROJECT AND
AUTHORIZING THE EXECUTION OF DOCUMENTS IN CONNECTION THEREWITH; AND
2) APPROVE AN ORDINANCE TO REQUEST ADDITIONAL VOLUME CAP IN
CONNECTION WITH PRIVATE ACTIVITY BOND ISSUE FOR FABRIK INDUSTRIES, INC.
PROJECT
Motion by Glab, second by Condon, approving an Ordinance Authorizing the Issuance of
Industrial Development Revenue Bonds for Fabrik Industries, Inc. Project and Authorizing the
Execution of Documents in Connection Therewith; and, an Ordinance to request Additional
Volume Cap in Connection with Private Activity Bond Issues for Fabrik Industries, Inc. Project, as
presented.
Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
PRESENTATION OF CHARACTER COUNTS! RECOGNITION AWARDS
Mayor Low announced that Alderman Condon has stepped down as the Chairperson for
the Character Counts! Coalition however will continue to serve on the Board of Directors.
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Mayor Low introduced Carl Vallianatos, Director of Curriculum and Instruction for
District 156. Mr. Vallianatos introduced two recipients of th e Character Counts! Recognition
awards:
Ms. Sandy Dwire, a teacher of Social Studies at both East Campus and West Campus;
and,
Ms. Leah Vercelli, a third year Biology teacher at East Campus.
Mr. Vallianatos spoke highly of both teachers, praising their participation in numerous activities
and their interaction with peers and students.
Mayor Low introduced Mike Palmer, Superintendent of Water Department for the City
of McHenry. Mayor Low stated that Mr. Palmer was nominated by Director of Public Works
Schmitt for providing extraordinary customer service to a resident on March 28, 2016. D irector
Schmitt informed Council that customer service is an important component to the Public Works
Department and that Mr. Palmer went far beyond what anyone would expect in order to assist
this particular resident.
PRESENTATION BY THE MCHENRY AREA CHAMBER OF COMMERCE
McHenry Area Chamber of Commerce Board Member Mike Mrachek informed Council
Mr. Frank Hosticka is the new Membership Director for the McHenry Area Chamber of
Commerce. Mr. Mrachek provided Council with a brief summary of the itinerary fo r Fiesta Days
2016.
Chamber Member Sue Miller informed Council about a new event launched by the
McHenry Area Chamber of Commerce called Downtown Uncorked on September 17, 2016. Ms.
Miller informed Council that regrettably Ms. Jane Manny would be leavin g her employment
with the McHenry Area Chamber of Commerce due to health reasons. Ms. Manny’s position
will not be immediately filled on a full-time basis, however, Ms. Kristina Hosticka will be
assisting the Chamber with some general administrative duties.
Mayor Low thanked Mr. Mrachek and Ms. Miller, stating Council appreciates the
Chamber’s quarterly presentations.
PUBLIC INPUT SESSION
No one spoke at Public Input Session.
CONSENT AGENDA
A. Pay application #3 to Williams Brothers Construction, in the a mount of $2,077,444.97, for Wastewater Treatment
Plant Improvements;
B. Change Order #1, for an amount not to exceed $18,078, to Keno & Sons of Lake Bluff, IL, for the Fieldstone Lift Station
Rehabilitation Project;
C. Purchase of 2017 Peterbilt Model 348 Hook Lift Truck with two Sludge Boxes from JZ Peterbilt of Wadsworth, IL, for
an amount not to exceed $287,414, through the Lake County Department of Transportation’s Joint Purchasing
Agreement contract;
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D. Waive bidding requirements and purchase a Case 821F Wheel Loader, including the trade-in of a 1990 Case 821
Wheel Loader, for an amount not to exceed $232,706.35, from McCann Industries, Inc., McHenry, IL;
E. Request for Traffic Control on Kane Avenue between Center Street and Green Street on May 19, 2016, from 5:00 pm
to 8:00 pm, to accommodate McHenry High School Graduation Ceremony at McCracken Field;
F. Special Use Permit to Kelly Miller Circus for the use of Petersen Park and one-time waiver of Municipal Code Chapter
16, Sec. 16-25 to allow overnight camping in Petersen Park from September 7, 2016 to September 9, 2016; and
G. Approval of Payment of Bills, in the amount of $330,276.10.
Alderman Peterson requested the Item F on the Consent Agenda be voted on
separately.
Director of Public Works Schmitt responded to Ald erman Curry’s inquiry regarding Item
D and the reason for requesting the bidding requirement be waived.
Motion by Wimmer, second by Schaefer, approving the Consent Agenda, Items A
through E, and G, as amended.
Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Alderman Peterson stated that every year he votes in opposition to the Kelly Miller
Circus. He noted that Ringling Bros. Barnum & Bailey has retired their elephants and he would
like to see all circuses retire elephants together with some of the other animals.
Motion by Wimmer, second by Curry, approving Consent Agenda, Items F, as presented.
Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Condon.
Voting Nay: Peterson.
Absent: None.
Motion carried.
MOTION TO APPROVE ORDINANCE GRANTING A CONDITIONAL USE PERMIT TO ALLOW A
TAVERN AT 3515 DIAMOND DRIVE AND A VARIANCE FROM THE OFF-STREET PARKING AND
LOADING REQUIREMENTS FOR THE DIAMOND PLAZA SHOPPING CENTER, LOCATED AT 3501 -
3525 N. RICHMOND ROAD
Director of Economic Development Martin informed Council that the applicant is
requesting a Conditional Use Permit to allow a tavern at 3515 Diamond Plaza, in the current
space of the Marine Corp Recruiting Center. Applicant is also seeking a variance from the off-
street parking and loading requirements for Diamond Plaza Shopping Center to accommodate
the tavern use.
Staff believes the proposed tavern use is an appropriate land use for the subject
property. The shopping center and the su rrounding area contain a diverse selection of retail;
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restaurant and service-oriented land uses and the proposed tavern will provide an additional
element to complement the existing uses and is appropriately situated along a commercial
highway corridor. The applicant operates a video gaming café similar to Stella’s and Betty’s
Bistro, located within the McHenry Plaza and McHenry Grounds Shopping Center respectively.
The proposed tavern would have varying hours from Verizon and Dunkin Donuts, which
occupy a total 7,142 square feet within the Center, and the proposed tavern would draw
additional traffic to the Center benefiting the existing uses. With the vacancies currently
existing in Northgate West Shopping Center, the proposed use would provide another incentive
to attract more tenants to the area.
Director Martin informed Council that the Diamond Plaza currently has 43 parking
spaces and in accordance with the City’s Zoning Ordinance is classified as a shopping center.
Lacey’s Place is requesting a variance of eight parking spaces to accommodate Lacey’s Place.
Director Martin pointed out there is some opportunity for shared parking between Verizon and
Dunkin Donuts and Lacey’s Place, as the parking demands vary by day and time and having a
mixture of different uses with varying operational hours and days allows the Center to function
efficiently even with a shortage of required parking.
Director Martin stated that the Planning and Zoning Commission unanimously
recommended approval, by a vote of 6-0, of a Conditional Use Permit to allow a tavern at 3515
Diamond Drive and a Variance from the Off-Street Parking and Loading Requirements for
Diamond Plaza Shopping Center, located at 3501 -3525 Diamond Drive.
Responding to Alderman Schaefer’s inquiry regarding whether the Marine Recruiting
Center is closing or moving locations, Director Martin stated that he is unaware of the Marine
Recruiting Centers plans.
Alderman Curry opined that the proposed use if effectively a video gaming facility.
Director Martin stated that as a land use it is classified as a tavern, however, the income is
being supplemented by video gaming.
Alderman Glab stated he would like to see the topic of video gaming establishments
addressed on the Committee level. He opined that it is difficult to observe so many moving into
the City.
Motion by Schaefer, second by Santi, approving the Ordinance granting a Conditional
Use Permit to allow a tavern at 3515 Diamond Drive and an eight (8) space parking Variance
from the off-street and loading requirements for Diamond Plaza Shopping Center, located at
3501-3525 Diamond Drive, as presented.
Voting Aye: Santi, Schaefer, Wimmer, Peterson, Condon.
Voting Nay: Glab, Curry.
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Absent: None.
Motion carried.
MOTION TO APPROVE AN APPLICATION FOR A CLASS A1 LIQUOR LICENSE FROM LACEY’S
PLACE LLC D/B/A LACEY’S PLACE, LOCATED AT 3515 DIAMOND DRIVE AND AN ORDINANCE
AMENDING MUNICIPAL CODE CHAPTER 4 SEC. 4-6(1) INCREASING THE NUMBER OF CLASS A1
LIQUOR LICENSES IN EFFECT FROM TWO (2) TO THREE (3)
City Administrator Morefield informed Council that Mr. Jeff Rehberger, President of
Lacey’s Place LLC Series McHenry d/b/a Lacey’s Place, submitted an application for a Class A1
liquor license in conjunction with a video gaming café in the Diamond Plaza. Lacey’s Place is
located at 3515 Diamond Drive, the former site of the US Marine Recruiting Office.
The Class A1 liquor license permits the service of beer and wine for consumption on the
premises, with service at a bar and tables, and the retail sale of packaged beer and wine. The
applicant, Lacey’s Place, is marketed as an establishment that offers Blue Nose beers on draft,
fine wines and packaged beer at retail in conjunction with video gaming. The food menu would
include products such as pizza, burgers, sandwiches and snacks. City Administrator Morefield
informed Council that all fees have been paid and all paperwork requirements have been
submitted. Mr. Rehberger and the manager, Jeffrey Mick, have been fingerprinted by the
McHenry Police Department.
Mayor Low informed Council that she met with Mr. Rehberger and his son. Lacey’s Place
is a family-owned business enterprise. Mayor Low stated that she has no concerns permitting a
liquor license for Lacey’s Place.
Alderman Santi stated that, as stated by Alderman Glab, he also has some concerns
regarding the number of video gaming establishments that are in the City.
Alderman Peterson opined that as long as applicants are meeting the criteria that have
been established by the City it is not up to him to dete rmine what type of business can be
opened in the City.
Motion by Santi, second by Schaefer, granting a Class A1 Liquor License to Lacey’s Place
LLC Series McHenry d/b/a Lacey’s Place, located at 3515 Diamond Drive, with the requirement
that all employees involved in the sale and service of alcoholic beverages obtain State of Illinois
BASSET certification and approving an Ordinance increasing the number of Class A1 Liquor
License in effect from two (2) to three (3), as presented.
Voting Aye: Santi, Schaefer, Wimmer, Peterson, Condon.
Voting Nay: Glab, Curry.
Absent: None.
Motion carried.
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MOTION TO APPROVE AN ORDINANCE AUTHORIZING THE MAYOR’S EXECUTIVE OF AN
ECONOMIC INCENTIVE AGREEMENT BETWEEN THE CITY OF MCHENRY AND MCHENRY
DONUTS, INC., RELATING TO THE PROPERTY LOCATED AT THE SOUTHWEST CORNER OF OAK
AVENUE AND FRONT STREET
Director of Economic Development Martin reiterated to Council that on September 21,
2015, Council approved Ordinances granting a Conditional Use Permit to allow a drive -in
establishment and outdoor seating in conjunction with a restaurant and variances from the off -
street parking and loading requirements, landscaping and screening and accessory uses, yards
and fences, as well as a variance from Chapter Seven Article XI Fences in the City of McHenry
Municipal Code, to allow a fence in the required corner side yard. The Ordinance would permit
construction of a new 2,700 square foot Dunkin Donuts store, which will be the third Dunkin
Donuts in the City of McHenry, under the same ownership.
Director Martin informed Council that since receipt of approval the franchisee for the
McHenry Dunkin Donuts locations has been completing due diligence on the site, which
included soil testing to ensure adequate bearing capacity existed to construct the store.
Following soil testing the franchisee learned the extent of the poor soil conditions at the subject
property, which will require unusable soil to be excavated and removed and new engineered
soil/fill to be brought to the site to ensure the building foundation can be property sustained. It
has been ascertained that the soil removal and hauling in of new engineered fill is estimated to
cost $125,000, which is equal to 50% of the purchase price of the site.
The franchisee for Dunkin Donuts in und er contract and has spoken with his lender and
corporate executives at Dunkin Donuts. For the project to move forward and receive financing
from the lender and Dunkin Donuts Corporate, the franchisee requires a mechanism to finance
at least half (or $62,500) of the soil remediation cost. Staff is proposing a sales tax rebate in an
amount not to exceed $62,500. Due to funds already expended in excess of $10,000,000 the
franchisee is seeking assistance to make the project viable and commence construction, as
opposed to finding a new location and beginning the entitlement process again. Assuming an
alternative site could be found and placed under contract.
Director Martin outlined the proposed agreement, which has a 10 -year term and
includes 100% of the base sales tax of 1% tax of the total gross receipts. Director Martin noted
that the City could still receive .5% Home Rule Sales Tax from day one and through the entire
term of the Agreement and following the expiration of the proposed Rebate Agreement, the
City would receive 1.5%.
Director Martin informed Council the franchisee intends to invest approximately
$910,000 in completing the proposed project, which includes land development, building
construction and equipment costs. The franchisee estimates annual s ales at the subject
property at $624,000 with a 10% growth in sales anticipated for year two, three and four, after
which the sales would plateau.
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Responding to Alderman Peterson’s inquiry regarding whether a structure have ever
existed at the proposed site, Director Martin stated that he is unaware of a building that existed
on the site.
Responding to an inquiry from Council, Mr. Patel, the applicant and franchisee,
addressed Council. Mr. Patel stated that the site was chosen because it is the most feasible for
the business at that parcel of land.
Alderman Glab opined he continues to have concerns regarding traffic issues at the site.
Additionally, he stated that the City seems to be giving out a lot of incentives to various
businesses.
Mayor Low stated part of a City’s responsibility is to invest in businesses. That is why the
incentive tools are in place.
Motion by Wimmer, second by Condon, approving the Ordinance authorizing the
Mayor’s execution of an Economic Incentive Agreement between the C ity of McHenry and
McHenry Donuts, Inc., as presented.
Voting Aye: Santi, Schaefer, Curry, Wimmer, Peterson, Condon.
Voting Nay: Glab.
Absent: None.
Motion carried.
MOTION TO APPROVE AN ORDINANCE AUTHORIZING THE MAYOR’S EXECUTION OF AN
ECONOMIC INCENTIVE AGREEMENT BETWEEN THE CITY OF MCHENRY AND 3017 ROUTE 120,
LLC AND NORTHERN ILLINOIS AUTO GROUP, INC., RELATING TO THE PROPERTY LOCATED AT
3017 WEST ROUTE 120 (FORMER SITE OF EXTREME JEEP)
Director Martin informed Council that the name of the business is actually Northwest
Suburban Auto Group, Inc. The Economic Incentive Agreement (Agreement) requested is for
base sales tax only and does not include the .5% Home Rule Sales Tax, which the City does not
receive on products licensed and titled by the State of Illinois (including vehicles).
Northwest Suburban Auto Group currently have two locations, one in Grayslake and one
located at 1701 W. Route 120. They are proposing to relocate their 1701 W. Route 120 location
to the former site of Extreme Jeep, located at 3017 W. Illinois Route 120 while still maintaining
the Grayslake location. Annual sales in 2015 at the current site were approximately $4.1 million
and sales at the Grayslake location in 2015 was approximately $7.2 million.
Director Martin outlined the proposed terms of the Agreement and stated based upon
the given 2015 sales, under the proposed sales tax rebate structure the City of McHenry would
receive $20,500 for the first five (5) years and $30,750 for years six through ten (10), assuming
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no growth in sales. After year ten (10), the City would receive $41,000. The sales tax rebate
proposed is predicated on the improvements being completed by the owner locating to the
subject property and generating sales tax. Director Martin noted that the as sessed valuation of
the property at 3017 W. Illinois Route 120 has decreased by $10,000 between 2013 and 2015.
The proposed Agreement terminates on the earlier to occur of:
a. The City’s payment to the Owner of the Maximum Total Payment Obligation;
b. The Permanent Closure of the Tenant prior to the City’s payment to the Owner
of the Maximum Total Payment Obligation of the City; or
c. The end of the tenth revenue year (December 31, 2016).
Staff believes the proposed Agreement is justified due to the extraordinary
circumstances surround the proposed redevelopment. The subject property is a key
redevelopment piece within the City of McHenry because of its visibility, accessibility and the
amount of traffic that traverses east of the Fox River. The site is deemed cri tical to the viability
of the commercial corridor.
Director Martin informed Council that this section of Route 120, which is east of the Fox
River, is challenging for prospective retailers. It is east of Richmond Road and far enough away
from Chapel Hill Road, which makes it difficult to justify location to the site for many
prospective retailers. The site was previously the site of a flea market, but has been vacant for
several years. Staff opined that while rebates should be considered on a case by case basis,
which has always been the case for the City Council, the proposed rebate is not excessive and
the positive impact the redevelopment would have financially, aesthetically and to City
residents and businesses outweighs the requested financial incenti ve.
Responding to an inquiry from Alderman Santi regarding how many cars would be at the
new location, Mr. Jim Gosnell, President of Northwest Suburban Auto Group, Inc., stated that
over 100 vehicles would be displayed at the new location and that four f ull-time mechanics
would be employed.
Responding to an inquiry from Alderman Wimmer regarding the time frame anticipated
until the establishment is operational; Mr. Gosnell stated that two to three weeks is
anticipated.
Motion by Santi, second by Glab, approving the Ordinance authorizing the Mayor’s
execution of an Economic Incentive Agreement between the City of McHenry and 3017 Route
120, LLC and Northwest Suburban Auto Group, Inc., subject to a lease between 3017 Route 120,
LLC and Northwest Suburban Auto Group, Inc. being executed no later than June 17, 2016, as
presented.
Voting Aye: Santi, Glab, Schaefer, Curry, Wimmer, Peterson, Condon.
Voting Nay: None.
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Absent: None.
Motion carried.
Mayor Low wished Mr. Gosnell good luck in the venture. She stated that she is looking
forward to the corridor once more being a vibrant part of the community.
MOTION TO APPROVE AN ORDINANCE GRANTING A CONDITIONAL USE PERMIT TO ALLOW
AN ASSEMBLY USE FOR AN EDUCATIONAL INSTITUTION AND 3,760 SQUARE FOOT BUILDING
ALTERATION FOR MCHENRY MIDDLE SCHOOL, LOCATED AT 2120 W. LINCOLN ROAD
Director of Economic Development Martin reiterated to Council that McHenry
Elementary School District 15 is currently in the process of a long-range plans to remove mobile
classrooms, as well as evaluating space needs to further specific educational needs at all of its
schools and construct permanent building additions and/or structural alterations to
accommodate additional learning space. The first five building additions approved are:
1. Chauncey H. Duker School;
2. Hilltop Elementary School;
3. Edgebrook Elementary School;
4. Valley View Elementary School; and
5. Riverwood Elementary School, which included a building addition and structural
alterations, similar to the request at McHenry Middle School
The proposed structural alteration consists of 3,760 square feet. McHenry Middle
School was annexed to the City of McHenry in 2001 and included an Annexation Agreement,
however, the Agreement has expired (following a ten year term) and a condition use was ne ver
obtained when the property was originally annexed. The City of McHenry’s Zoning Ordinance
classified schools as an assembly use, and assembly uses are Conditional Uses in all residential
zoning districts.
The Zoning Ordinance requires any expansion, enlargement or structural alteration on a
property with a Conditional Use Permit obtain an additional Conditional Use Permit. In this
case, a Conditional Use Permit for an assembly use is required because one was not originally
obtained; however, if one was obtained a Conditional Use Permit would still be required due to
the proposed structural alteration.
Staff believes the structural alteration, which consists of an existing open courtyard
consisting of 3,760 square feet, which will permit the construction of a Science, Technology,
Engineering and Math Laboratory (STEM Lab), would not adversely impact neighboring
properties or public safety and health. The actual building plans would be reviewed by the
Regional Superintendent of Education’s Office; however, the City of McHenry would be
required to issue a Stormwater Permit for the building alterations pending Council’s approval of
the request.
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The Planning and Zoning Commission unanimously recommended approval by a vote of
(6-0) of the application for a Conditional Use Permit to allow an assembly use (educational
institution) and proposed building alteration totaling 3,760 square feet, with the condition the
site is developed in substantial conformance with the site plan prepared by Arcon, dated March
6, 2016, on the subject property located at 2120 W. Lincoln Road.
In response to Alderman Curry’s inquiry, Director Martin responded the City is not
required to review building plans.
Alderman Condon commended District 15 on accomplishing their work without t he
need of a referendum. She opined that the renovations are good for the students.
Motion by Curry, second by Santi, granting the Conditional Use Permit to allow an
assembly use (educational institution) and proposed building alteration totaling 3,760 sq uare
feet, with the condition the site is developed in substantial conformance with the site plan
prepared by Arcon, dated March 6, 2016, on the subject property located at 2120 W. Lincoln
Road.
Voting Aye: Santi, Glab, Schaefer, Curry, Wimmer, Peterson.
Voting Nay: None.
Absent: None.
Abstain: Condon.
Motion carried.
MOTION TO APPROVE AN ORDINANCE AUTHORIZING THE MAYOR’S EXECUTION OF AN
AGREEMENT TO RELEASE HOVSITE IRISH PRAIRIE LLC FROM LETTER OF CREDIT/BONDING
AND OTHER OBLIGATIONS ARISING OUT OF AN ANNEXATION AGREEMENT, DATED AUGUST
29, 2005, BETWEEN HOVSTONE PROPERTIES ILLINOIS LLC D/B/A TOWN & COUNTRY HOMES
AND THE CITY OF MCHENRY
Director of Economic Development Martin informed Council that Staff has been working
with Avanti Properties, interested in purchasing the southern half of Oaks at Irish Prairie
subdivision. Oaks at Irish Prairie subdivision was annexed in 2005. The portion south of
Veterans Parkway was platted and includes 206 single-family lots, 54 of which have been
completed. The remaining 189 lots are located north of Veterans Parkway. The Annexation
Agreement adopts an Integrated Design District Plan and permits a maximum of 395 single -
family homes (north and south of Veterans Parkway).
Avanti Properties is a land holding company which acquires properties and holds onto it
until the vacant platted lots, in this case Oaks at Irish Prairie Subdivision, is ready to be
purchased by a builder. Avanti has the resources to hold properties for extended periods until
such time lots can be built upon (i.e., homes constructed). Staff believes Avanti would be a
better partner than Hovsite Irish Prairie LLC. as Staff had to be diligent regarding maintenance
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of the vacant lots. Hovsite has established they have no real interest in developing the
subdivision and therefore, Staff believes it is in the City’s best interest to partner with Avanti.
The Agreement with Avanti includes several provisions which benefit the City of
McHenry and the residents of the subdivision including:
Completion of the Barreville Road improvements within a specific time frame;
Updating current bond amounts, so they reflect current unit costs;
Agreeing to increase their bonds 3% annually to adjust for inflation and unit
price increases on labor and material.
Director Martin noted that Avanti is not acquiring the northern half of the subdivision,
which is not platted and is owned by another party. The northern half of the subdivision would
remain part of the Annexation Agreement and the owner of the property is obligated to comply
with those provisions.
The southern half of Oaks at Irish Prairie subdivision consists of three units: 1, 1A and 2,
and secured by three performance bonds. Unit 1 contains 32 platted vacant lots, Unit 1A
contains 56 platted vacant lots and Unit 2 contains 64 platted vacant lots. Offsite roadway
improvements are required to Barreville Road, secured by a fourth bond. The improvements
consist of a southbound to westbound right -hand turn lane; a southbound to eastbound left-
hand turn lane and through lane.
The public improvements in Unit 1 are completed and accepted and the two -year
maintenance period has expired. Hovsite will complete the final requirements and Unit 1 will be
off maintenance. Unit 1A Bond and Unit 2 Bond will be submitted by Avant i and replace the
bonds the City currently holds with Hovsite, which secure the completion of the remaining
uncompleted public improvements other than sidewalks, trees, driveway aprons and parkway
landscaping. The “clubhouse” requirement would remain in the Annexation Agreement.
Responding to an inquiry from Alderman Curry regarding the clubhouse, Director Martin
reiterated the residents were approached a few years ago about the clubhouse issue. At that
time they expressed their desire not to be responsible for maintenance of a clubhouse.
Therefore, an alternative passive park plan was submitted , which the residents supported.
Avanti has indicated that when the property is ready for development, the developer will again
approach the residents regarding their desire for a clubhouse.
The City Attorney has review and modified the bonds to be submitted by Avanti, issued
by International Fidelity Insurance Company to secure the public improvements for Units 1A, 2
and Barreville Road.
Motion by Wimmer, second by Curry, approving the Ordinance authorizing the Mayor’s
execution of an Agreement to Release Hovsite Irish Prairie LLC from a Letter of Credit and other
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obligations arising out of an Annexation Agreement, dated August 29 2005, between Hovstone
Properties, LLC d/b/a Town & Country Homes and the City of McHenry.
Voting Aye: Santi, Glab, Schaefer, Curry, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
MAYOR'S STATEMENT AND REPORT
Mayor Low had no Statement or Report.
COMMITTEE REPORTS
Chairman Alderman Condon informed Council that a meeting of the Community
Development Committee is scheduled for Monday, May 9, 2016, at 7:00 pm.
STAFF REPORTS
There were no Staff Reports.
FUTURE AGENDA ITEMS
There were no Future Agenda Items.
ADJOURNMENT
Motion by Wimmer, seconded by Peterson, to adjourn the meeting at 8:21 pm.
Voting Aye: Santi, Glab, Schaefer, Curry, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
The meeting was adjourned at 8:21 pm.
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City Clerk